csg natural gas policy academy - …knowledgecenter.csg.org/kc/system/files/rogers kyle pp.pdf ·...
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Smart Modernization:
Infrastructure Replacement & Expansion Overview
CSG Natural Gas Policy Academy
2
Pipeline Safety &Infrastructure Replacement
Commitment to Safety
SafestEnergy DeliverySystem in America
The natural gas industry has a long-standing record of providing natural gas service safely and effectively to more than 177 million Americans and
is dedicated to the continued enhancement of pipeline safety.
Interstate Pipelines
Intrastate Pipelines
Safely transported
Across the Country
• Natural gas pipelines, are an essential part of the nation’s infrastructure. Transportation by pipeline is the safest form of energy delivery in the country.
• Natural gas utilities spend $19 billion annually to help enhance the safety of natural gas distribution and transmission systems.
There is significant oversight and
regulation focused on the natural gas
industry to help ensure public safety.
The U.S. Department of
Transportation’s Pipeline and
Hazardous Materials Safety
Administration (PHMSA) establishes
federal safety standards for pipelines,
and PHMSA partners with state
pipeline safety agencies on
inspections and enforcement of
intrastate pipelines. Individual states
can regulate intrastate pipeline
systems above and beyond federal
requirements, and there are hundreds
of state-specific pipeline safety
regulations currently in place.
Regulatory Oversight
• Information sharing among emergency
responders and the public that effectively informs
and enhances pipeline safety
• Research and development of safety-enhancing
technologies
• Collaboration with key stakeholders
• Advocating for the effective enforcement of
“Call 811”
• Conducting forums for the industry that facilitate
the sharing of leading practices
AGA supports continuous improvements to the safe delivery of natural gas through:
• Transmission Integrity Management Program (TRIMP)
• Distribution Integrity Management Program (DIMP)
• Control Room Management
• Damage Prevention
• Land Use Planning
• Public Awareness
• Emergency Preparedness
Pipeline Safety Regulations
DOT Pipeline Safety & Hazardous Materials Administration (PHMSA)
Regulates gas utilities under 49 C.F.R. Part 192
Significant number of new requirements on the way
More than 80 mandates from Congress and recommendations from NTSB, GAO, and the OIG
Pipeline Safety Reauthorization
PHMSA’s
Other Initiatives:
DOT Pipeline Safety Action Plan
• Raise the bar on pipeline safety
• Accelerate rehabilitation, repair and
replacement programs for high risk pipelines
• Focus on cast iron, bare steel, older plastic
In Section 7 of the Pipeline Safety,
Regulatory Certainty, and Job Creation Act
of 2011, Congress directed the Secretary of
Transportation to develop a report on the
national cast iron inventory
• AGA Supports the Action Plan and “Smart
Modernization” of infrastructure that is no
longer fit for service
8
For Economic Renewal
Infrastructure Investments
America’s natural gas utilities invest billions in our nation’s natural gas 2.4 million miles of pipeline infrastructure — the most extensive, integrated, safe and reliable in the world — which provides access to homes and businesses across the nation.
Working with governors, legislators and state regulators around the country, utilities are developing innovative models for making these capital investments possible.
Natural gas utilities spend more than $22 billion annually to help enhance the safety of natural gas distribution and transmission systems and to upgrade systems and expand service so more Americans can access this foundation fuel.
• The overall trend is positive
• States address this issue differently
• The basis for these decisions is always just and reasonable rates for consumers
States with Accelerated Infrastructure Replacement Programs
• Idaho and Vermont have finished replacing their cast iron and bare steel.
• Wisconsin has finished replacing its cast iron and bare steel main and has a limited quantity of bare steel services remaining.
• Other companies/states on this list are on the verge of completing their cast iron and bare steel replacement.
Remaining Materials in States without Mechanisms
Source: DOT Data
State
Main -Steel
Unprotected
Bare (Miles)
Main -
Cast/Wrought
Iron (Miles)
Estimated Miles
of Services -Steel
Unprotected Bare
Estimated Miles of
Services -
Cast/Wrought Iron
AK 7.5 0 0.00 0.00
DE 6.18 76.3 8.13 0.00
HI 101.8 0 83.27 0.00
ID 0 0 0.00 0.00
MT 3.34 0 0.63 0.00
ND 0 0 0.14 0.00
NM 5 0 0.55 0.0
SD 0.068 0 1.92 0.00
VT 0 0 0.00 0.00
WI 0 0 0.04 0.00
WY 19.24 0 22.51 0.00
Totals 143.128 76.3 117.19 0
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Mile
s
SOURCE: U.S. Department of Transportation, PHMSA, Distribution Annual Data
Overall Cast Iron Main Makes Up Less than 3% of the Distribution Mileage, and is Decreasing Annually
NOPR: Safety of Gas Transmission Pipelines
• The proposals within the rule cover the following:
• Expansion of Integrity Management beyond HCAs including the introduction of "Moderate Consequence Areas"
• Expansion of the HCA definition• Removal of the "Grandfather Clause" (§192.619(c)) for MAOP
Determination• Pig-ability of Gas Transmission Pipelines• Risk Models• Repair Criteria for Assessments in HCAs and MCAs• MAOP Validation (within the Integrity Verification Process)• MAOP Exceedances• Corrosion Control P&M Measures• Management of Change• Gas Gathering Lines• Inspection of Pipelines following weather events &Other Gas
Transmission Pipeline Issues
NOPR: Safety of Gas Transmission Pipelines
• AGA Position Themes:
1. Codification of “Best” or “Good” Practices that are not appropriate for Federal Minimum Safety Standards (aka regulations)
2. A shift from performance based regulations to prescriptive regulations
3. Diversion of valuable resources from critical pipeline safety initiatives.
4. Questionable legality of many of the retroactive record requirements. Specifically: reliable, traceable, verifiable, complete
Pipeline Safety Regulatory UpdatesRegulations coming down the pike
1. Excess Flow Valves
2. OQ, Cost Recovery & Other Pipeline Safety Changes
3. Plastic Pipe
4. Valve Installation & Rupture Detection
5. National Pipeline Mapping System
6. Miscellaneous Rule (Construction Inspection)
7. New Regulations to watch for:
a. Underground Storage
b. Quality Management
Natural Gas Distribution Infrastructure Expansion
“Smart Modernization”
Infrastructure replacement programs, if designed and coupled properly, provide the opportunity to put new technology in the ground which could allow for greater pipeline capacity and pressure in a given area.
With greater capacity, utilities are better positioned to expand to serve more customers.
Drivers for Natural Gas Demand & Infrastructure Expansion
• Low price of natural gas
• Reductions in consumer energy prices
• Economic development opportunities
• Environmental quality (GHG reduction, efficiency)
• Energy security
• New technologies (NGVs, CHP, etc.)
The low price of natural gas has attracted investment by utilities.
Where natural gas is available, a builder will put it in 84 percent of the time.
Natural gas will have 80 - 90 percent of the market where lines reach, but there is a significant amount of construction and/or area beyond reach of utility lines.
States with Infrastructure Expansion Programs 39
states presently
have or are considering
an innovative infrastructure
expansion program or
policy
The Declining Trend of Natural Gas Emissions
System Modernization Has Been a Decades Long Process and Will Continue
0
20,000
40,000
60,000
80,000
100,000
120,0001
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0
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Cast Iron and Unprotected Steel Pipeline (Miles)
Main - Unprotected Steel
Main - Cast Iron
Source: Department of Transportation
Source: AGA Analysis based on Department of Transportation data and EPA Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-2012
*Excludes Reductions from Voluntary Programs
600
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Thousand Miles of Main
Million Metric Tons CO2-equivalent
Pipeline Replacement Lowers Emissions
Estimated Potential Emissions from Main Pipe
Installed Main Pipe
As a Result, Emissions Have Declined Even as the System Grows
Natural Gas Distribution Shrinking Emissions by the Numbers
• 65,100 – miles of cast iron & bare steel pipe replaced with PE plastic pipe
• 300,000 – added miles of distribution mains
• 18 million – number of new customers served (32% increase)
• 16% - emissions decline since 1990
• *Note that this is due to an uptick in emissions related to higher throughput in 2013, relative to lower consumption in 2012.
• 0.26% - EPA estimated distribution system emissions as a percentage of U.S. Gross Production
*Numbers reflect data collected from 1990-2013
• Safe, reliable natural gas delivery is core to our members businesses.
• Smart modernization initiatives (pipeline replacement and infrastructure expansion) are increasing safety and driving down natural gas emissions.
Conclusions
Kyle RogersVice President, Government [email protected](202) 824-7218
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